SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Crystallex (KRY)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Gutman who wrote (7219)3/23/1998 9:59:00 AM
From: E. Charters  Read Replies (2) of 10836
 
You are chartered financial analyst and you make a statement like the NPV of a an ounce of gold may be one fiftieth of its market value? It may be true that future earnings discount to low dollars today but what about the value, not insubstantial, of an assured income in future years? This would normally lend lustre and an additional factor of equity to earnings to an company.

Did you every heard of residual value? The fact is Echo Bay Mines who are dead cheap and should have a handle on gold's value used to buy Gold in the ground in the early 80's at $30 US an ounce. Gold to a producer with a mill is indeed worth at least $50.00 an ounce to the equity at least. In fact in 1996 there were no Gold mines in Canada trading for LESS than 85$ US per ounce in share value. In fact Dome mines NOW is trading at $106 US per ounce per share. This ignores the PROBABLE Gold that Dome will find on its presently mined properties.
It also ignores the price potential ore that may be found on these properties should gold increase in price.

The $50 per ounce valuation figure that is used still gives Gold miners a low price to earnings ratio. Gold is one of the few businesses where you can calculate your earnings for years ahead with a fair degree of certainty. Try doing that in a technology stock.

echarter@vianet.on.ca

The Canadian Mining Newsletter
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News